the comparative balance sheet of home and hearth inc for december 31 2009 and 2008 i 646159
The comparative balance sheet of Home and Hearth Inc. for December 31, 2009 and 2008, is as follows:
|
|
Dec. 31, 2009 |
Dec. 31, 2008 |
|
Assets |
|
|
|
Cash |
$ 402,100 |
$ 424,600 |
|
Accounts receivable (net) |
354,200 |
342,100 |
|
Inventories |
631,900 |
614,200 |
|
Investments |
0 |
150,000 |
|
Land |
325,000 |
0 |
|
Equipment |
550,000 |
425,000 |
|
Accumulated depreciation |
(152,700) |
(125,300) |
|
|
$2,110,500 |
$1,830,600 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Accounts payable (merchandise creditors) |
$ 482,400 |
$ 467,800 |
|
Accrued expenses (operating expenses) |
39,600 |
44,200 |
|
Dividends payable |
5,500 |
4,000 |
|
Common stock, $1 par |
24,000 |
20,000 |
|
Paid in capital in excess of par—common stock |
260,000 |
120,000 |
|
Retained earnings |
1,299,000 |
1,174,600 |
|
|
$2,110,500 |
$1,830,600 |
The income statement for the year ended December 31, 2009, is as follows:
|
Sales |
|
$3,745,700 |
|
Cost of merchandise sold |
|
1,532,500 |
|
Gross profit |
|
$2,213,200 |
|
Operating expenses: |
|
|
|
Depreciation expense |
$ 27,400 |
|
|
Other operating expenses |
1,936,800 |
|
|
Total operating expenses |
|
1,964,200 |
|
Operating income |
|
$ 249,000 |
|
Other expense: |
|
|
|
Loss on sale of investments |
|
(40,000) |
|
Income before income tax |
|
$ 209,000 |
|
Income tax expense |
|
63,000 |
|
Net income |
|
$ 146,000 |
The following additional information was taken from the records:
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $110,000 cash.
d. The common stock was issued for cash.
e. There was a $21,600 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.